Correlation Between Aier Eye and Mingchen Health
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By analyzing existing cross correlation between Aier Eye Hospital and Mingchen Health Co, you can compare the effects of market volatilities on Aier Eye and Mingchen Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aier Eye with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aier Eye and Mingchen Health.
Diversification Opportunities for Aier Eye and Mingchen Health
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aier and Mingchen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aier Eye Hospital and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Aier Eye is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aier Eye Hospital are associated (or correlated) with Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of Aier Eye i.e., Aier Eye and Mingchen Health go up and down completely randomly.
Pair Corralation between Aier Eye and Mingchen Health
Assuming the 90 days trading horizon Aier Eye Hospital is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Aier Eye Hospital is 2.35 times less risky than Mingchen Health. The stock trades about -0.23 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Mingchen Health Co on November 1, 2024 and sell it today you would lose (6.00) from holding Mingchen Health Co or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aier Eye Hospital vs. Mingchen Health Co
Performance |
| Timeline |
| Aier Eye Hospital |
| Mingchen Health |
Aier Eye and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aier Eye and Mingchen Health
The main advantage of trading using opposite Aier Eye and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aier Eye position performs unexpectedly, Mingchen Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mingchen Health will offset losses from the drop in Mingchen Health's long position.| Aier Eye vs. Bank of China | Aier Eye vs. Kweichow Moutai Co | Aier Eye vs. PetroChina Co Ltd | Aier Eye vs. Bank of Communications |
| Mingchen Health vs. Allmed Medical Products | Mingchen Health vs. Guangzhou Dongfang Hotel | Mingchen Health vs. Youngy Health Co | Mingchen Health vs. Aier Eye Hospital |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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